COUNCIL tax payers face a potential multi-million pound legal bill for equal wage claims by female council workers unless a deal is agreed over unfair pay.
A series of tribunal rulings means poorly paid cleaners and kitchen workers could be entitled to up to six years' back pay.
Unions estimate the cost to the region's local authorities - if all the cases go to court - could be £200m which would have to be paid for via higher council taxes.
Town hall bosses are urging ministers to let them borrow money for one-off compensation payments in a bid to keep the cost down to about £50m and avoid massive tax rises.
It is understood Gateshead Borough Council is to ask the Government to let it borrow cash for pay-offs worth £7.5m. But it could be liable for four times that much if workers go to court and win. The local government Employers' Organisation said more of the region's 25 councils could be forced to do the same.
Some have already reached settlements but the GMB union estimates outstanding claims in the region to be worth £200m.
The situation has arisen from a Single Status Agreement, which is set to lift some predominantly female jobs, such as cleaners, to the same salary level as predominantly male jobs which previously paid more.
Colin Smith, of the GMB un-ion, said: "Unions have to take a long-term view, because huge bills for councils could have an impact on jobs and services."
But a spokesman for the Office of the Deputy Prime Minister warned: "It's primarily for employers to manage financial pressures that may arise as part of their normal pay negotiations."
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